The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-12
THE GREAT IRON SYNDICATE.
A Plan Involving Many Millions--It VIII Con-
troll the Bessemer Ore Trade.

A Plan Involving Many Millions--It VIII Con-
troll the Bessemer Ore Trade.
Milwaukee sentinel
The stockholders Of the Iron King, Bonnie,
First National, Blue Jacket and Valley mines,
located on the Gogebic iron range which have
been known as the Burton mines, met yesterday
to the number of about two hundred. at the office
of John T.. Burton. on Milwaukee street. to
listen to the proposition for transfer of the
properties to the Bessemer Consolidated Iron
Company. of New York, This company was
the mines named and of operating them under
one management. The officers OF the company
are ex-senator Stephen W. Dorsey, president;
Jesse r. Grant, secretary, and ex-Assistant
Secretary of the Treasury Chas. E. Coon, treas
urer These gentlemen and ID. c. Wheeler, of
New York, who is associated with them in the
consolidated company, were present at the meet
ing:
larger than the limits of Mr.. Buttons Office
would accommodate, and an adj ournment was
taken to Severance Hall, across the street. A
joint meeting of all the stockholders was held.
and the plan OF consolidation was presented and
explained by Mr. Burton. The plan, which was
later accepted without dissenting vote. in
wolves many millions of money, and its consum-
nation will work new era in the iron industry
of the country. The consolidated company of
fered to purchase the mines at the following
prices: Iron King. $20 per share, $500 900: Bon
ME, SO per share, 100000; First National, So
per share, $500, 900: Blue Jacket, ST per share.
$3.50 900; Valley, 81 per share, $780, 0O0 total,
81, 800. 600. The plan provided that John E.
Burton should be made trustee. and that the
stock held by the various stockholders. the par
value being SO, 600, 600, should be placed in his
bands we'll as the stock of the consolidated
companies, which is S7.500000 The officers of
the consolidated company are to sell the stock
of their company. and as rapidly as the money
is secured 1t is to be paid over to Mr. Burton, as
trustee, who will in turn pay the money to the
stockholders In the old companies at the prices
stipulated. The officers OF the Bessemer Con-
solidated Company anticipate that they will be
able to sell sufficient of their stock by Christmas
To ma for fha mir at IA
but the terms of the sale give them until April
] to make the payment
The stock of the consolidated company will
be listed on the stock exchanges of Now York,
London and Amsterdam the stock
can be printed. This will be done in September.
Over $500, 600 worth Of stock in the consolidated
company was taken yesterday. Most of it was
spoken for by those who have been stockholders
in the old companies and others who were pres
ent at the meeting The par value of a share of
the stock is 500, and that subscribed for yester
day taken at $50 per share These COM
panies issue no bonds in connection with the
consolidation.
In close relation to the consolidation of the
mines of this range is another transaction, which
also involves a very large amount of money, AND
which will give the iron industry of the Gogebic
range a permanency and character that will be
enjoyed by other iron reproducing region in
this country. A contract has already been made
with the Great Lake Steam Shipping Company
of New York, whereby that company agrees to
build within q year. soon the work can
be accomp lshed, fifteen large steam vessels and
put them into the ore-carrying trade from Ash
land to Cleveland. These steam vessels are to
cost So, 200, 900 and will carry 1900 tons of ore
and a 9, 600 horse power engine. Each vessel is
to make sixteen trips season and carry 5O, O0O
tons of ore.
The consolidated company. on tbs other hand.
agrees to furnish the steamboat company with
800 900 tons of ore a season for shipment The
contract provides that the ore shall be carried
for ST. so per ton, the agreement to continue for
five years. Vessel-owners at present have the
mine owners at their mercy, and are exactng
exorbitant rates, securing as high as 81. 90 per
ton from Ashland 80 Cleveland. The Great
Lakes Shipping COG pany has capital stock OF
SIC. 600 900, and lie bonded for 50, 900, 900.
Elk Secretary of the Treasury VIM. Window.
and ex-Assistant Secretary Chas E. Coon, will
in a few weeks sail for London, where they will
attend to the listing of the Consolidated Iron
.Company's stock. and of the bonds and stock of
the shipping company. They will also negotiate
the bonds and stock as rapidly as possible.
Nearly one-h half OF the bonds of the Great Lake
Steamship Company has already been taken by
firm in London When these shipping ia
cliitles have been provided the Gogeoic range,
it is believed. will have the power to control
largely the Bessener ore trade in this country.
AT present from $50 900 to l. 000, 900 tons of for
eign ore are shipped to the United Staten. High
lake rates have prevented ore shipments to Buff
fao. There are annually 200. 600 coal cars run
into Buffalo from Pennsylvania that return
empty to the coal mines With fair lake rates
they could be sent back to tho furnaces Of Penn
sylvauia loaded with Gogebic ore. and thus cut
off the field in which foreign ore finds market
This it is expected will be accomplished by the
consolidation of the Gogebic mines, and such a
result would keep in this country about Sc. o0O.-
900 annually. which now goes abroad.
Another project con tempated by the con-
solidated companyis the construction of a rail-
road from Hurley to Ironton bay, thirteen miles
distant on Lake Superior. A charter for the
construction of such road under the name of
the Gogebic & Lake Superior Railroad Company
has already been secured. The road would be
down grade all the way the lake. survey
has just been concluded which shows that a
grade OF eighty feet to the mile could be had and
that car of ore could be started at Hurley and
run to the lake without the use of pound of
steam. At lronton bay there is fine harbor,
there being eighteen feet of water 200 feet from
shore while at Ashland that depth is not reached
1000 feet from shore. Negotiations are pendln
for the transfer of the charter to the consoli-
dated company. and should they secure it there
is probability of the road being built and a
breakwater constructed at the bay.
After listening to these statements the propo-
sition was unanimously adopted the part Of
the stockholders. There were 800. 900 shares
of stock in the five mines represented. and no
vote was recorded against the sale. or the I2O
900 shares of the Valley mine, 100, 16l shares
were represented. After the joint meeting
a meeting. but it virtually a meeting of the
stockholders jointly. and ratified the sale. The
necessary papers for the transfer were drawn
and delivered yesterday. One-thrd of the
money realized from the sale of the mines will
be paid to John e. Burton, in payment for his
interest in the mines. Mr.. Burton WILL trus-
next SIX months, and his Office will be at 40
Broadway.
Jos. G. Butler. of Youngstown. o., general
manager of the Brier Hill Iron and Coal Com
pany, will put $500. 900 of his individual money
into the consolidated company. Mr. Butler has
made a visit to all the mines, and is highly
pleased with them and the plan OF consolidation.
Prof Alex. Wlnchell, the well known geologist
of Michigan, and his brother, H. n Winchell,
State GeoloRist of Minnesota, who both regard
the Gogebic range as the largest oreproducing
range in this country. have interested them
selves in the consolidated property. AS far as
could be learned from stockholders, the consoli-
daton is perfectly satisfactory though before
the meeting some of them had blood In their
eyes and went to the meeting prepared to fight,
II necessary. The consolidation was urged by
NJ he Of fhar